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17) Consider the following yields to maturity on various one-year, zero-coupon securities ecurit Yield(%) Treasury 5.0 5.2 5.8 6.6 AA Corporate BB Corporate Co porate

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17) Consider the following yields to maturity on various one-year, zero-coupon securities ecurit Yield(%) Treasury 5.0 5.2 5.8 6.6 AA Corporate BB Corporate Co porate The credit spread of the BBB corporate bond is closest to A) 0.8% B) 1.10% c) 1.60% D) 0.40% 18) Consider a 30-year bond with annual coupon payments. The bond has a 2% coupon rate. If the yield to maturity of the bond 6%, what is the price of the bond per S100 face value A) S182.59 B) $100 C) $82.59 D) $44.94 19) A firm issues two-year bonds this firm's two-year debt is 08%, New two-year Treasury of 3.1%. What should the price of the firm's outstanding two-year bonds be per $100 of face val with a coupon rate of 6.7%, paid semiannually. The credit spread for notes are being issued at par with a coupon rate A) $126.40 B) $147.47 C) $84.27 D) $105.34 20) Coolibah Holdings is expected to pay dividends of $1.20 every six months for the next t the current price of Coolibah stock is $1260, and Coolibah's equity cost of capital is 18%, what price would you expect Coolibah's stock to sell for at the end of three years? A) S28.87 B) $31.76 C) $33.20 D) $34.64 21) The Busby Corporation had a share price at the start of the year of $26.10, paid a dividend of $0.59 at the end of the year, and had a share price of $29.50 at the end of the year. Which of the following is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this period? A) 14% B) 13% C) 12% D)15%

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